India’s Article 6.2 Breakthrough: Japan Partnership and Eligible Activities for Global Carbon Trading

India’s Article 6.2 Breakthrough: Japan Partnership and Eligible Activities for Global Carbon Trading

For years, the carbon market in India has been described as “promising” but not yet fully functional. That changed in August 2025, when India signed its first Memorandum of Cooperation (MoC) under Article 6.2 of the Paris Agreement with Japan.

This moment marks a turning point: India’s entry into official international carbon trading.

And here’s what makes it even more significant: just a month earlier, the Ministry of Environment, Forest and Climate Change (MoEFCC) had already published a list of eligible activities under Article 6.2 (July 14, 2025 memorandum). That means developers, corporates, and investors know exactly which sectors and technologies can generate credits under this framework.

Together, these two steps—the Japan partnership and the activity list—set the foundation for India’s global carbon market era.

In this detailed article, let’s break it down: what Article 6.2 is, what the India–Japan partnership means, which activities qualify, how the money flows, and why this is such a historic opportunity.


🌍 What Exactly is Article 6.2?

The Paris Agreement, adopted in 2015, created frameworks for countries to cooperate in achieving emission reduction targets. Article 6 is the part that deals with international cooperation and carbon markets.

-Article 6.2 enables bilateral or multilateral trading of emission reductions between countries.

-A country can invest in emission reduction projects in another country and claim the credits towards its own Nationally Determined Contributions (NDCs).

-These internationally traded units are known as Internationally Transferred Mitigation Outcomes (ITMOs).

Unlike voluntary carbon markets, Article 6.2 is government-backed and NDC-aligned. That makes it more credible, and more attractive for large-scale investments.

For India, this isn’t just climate diplomacy. It’s a way to bring in foreign investment, technology transfer, and long-term partnerships while strengthening its Net Zero 2070 pathway.


🇮🇳🤝🇯🇵 The India–Japan Joint Crediting Mechanism

On August 29, 2025, the Ministry of Environment, Forest and Climate Change (MoEFCC) announced the signing of an MoC with Japan on the Joint Crediting Mechanism (JCM).

Why is this so important?

  1. First Agreement under Article 6.2: India is no longer on the sidelines. It’s officially part of international carbon credit trading.

  2. Technology Transfer: Japan is a leader in advanced low-carbon technologies, from hydrogen to energy efficiency. These can now flow into India.

  3. Investment Flow: Projects in India that were financially unviable can now get foreign backing.

  4. Capacity Building: It’s not just about money—JCM includes training, knowledge exchange, and systems for better project monitoring.

  5. High-Level Political Will: With both PM Narendra Modi and PM Shigeru Ishiba highlighting the partnership, this is top-tier diplomacy.

The message is clear: India is open for global carbon business.


📜 The July 2025 Memorandum: Eligible Activities Under Article 6.2

The real game-changer is the clarity provided by MoEFCC’s memorandum (July 14, 2025).

Instead of vague promises, the Government listed specific activities that will qualify for trading under Article 6.2. This removes uncertainty and signals where opportunities lie.

Infographic showing eligible activities under Article 6.2 as per MoEFCC memorandum, divided into three categories: GHG mitigation activities like renewable energy with storage, hydrogen fuel cells, and sustainable aviation fuel; alternate materials such as green ammonia and high-end energy efficiency technologies; and removal activities including carbon capture, utilization, and storage (CCUS).

I. GHG Mitigation Activities

-Renewable energy with storage (only the stored component)

-Solar thermal power plants

-Offshore wind projects

-Green hydrogen production

-Compressed bio-gas projects

-Emerging mobility technologies (e.g., hydrogen fuel cells)

-High-end energy efficiency technologies

-Sustainable aviation fuel (SAF)

-Best available industrial technologies for hard-to-abate sectors

-Ocean energy (thermal, tidal, wave, current)

-High Voltage Direct Current (HVDC) transmission for renewable integration

II. Alternate Materials

-Green Ammonia

III. Removal Activities

-Carbon Capture, Utilization, and Storage (CCUS)

This list is valid for three years, after which NDAIAPA (the National Designated Authority for Implementation of the Paris Agreement) may update or revise it.

For businesses, this means one thing: certainty. You know what qualifies, so you can design projects and strategies accordingly.


💰 How the Money Will Flow

Infographic showing financial flows under India’s Article 6.2 carbon market, with Indian projects generating ITMOs. Arrows highlight revenue streams including carbon credit sales, foreign investments, direct localization funding, technology transfer, technology localization, reduced costs, domestic production, and public–private partnerships with partner countries like Japan.

Article 6.2 opens multiple financial channels:

-Carbon Credit Revenues – Indian projects generate ITMOs, which partner countries purchase.

-Foreign Investments – International capital enters Indian projects directly.

-Technology Localization – With new technologies entering, domestic production scales up and costs fall.

-Public–Private Partnerships – Especially in aviation, industry, and energy storage, partnerships will accelerate.

Example: An Indian project producing sustainable aviation fuel can attract Japanese investment, cut airline emissions, and generate credits Japan counts toward its NDC. That’s triple value—finance, decarbonization, and market creation.


📈 Why This Is a Huge Opportunity for India

  1. Global Carbon Market Access: India joins a $100+ billion international market.

  2. Diverse Sectoral Benefits: Aviation, industry, energy, transport—all benefit.

  3. Net Zero Finance: Helps fund India’s Net Zero 2070 commitments.

  4. Global Credibility: Positions India as a climate market leader.

  5. Future Agreements: Cabinet approval means MoEFCC can replicate the Japan deal with Europe, ASEAN, and others.

This is not incremental. This is transformative.


🏭 Sectoral Breakdown: Who Gains What?

-Renewables: Storage-linked solar, hybrid, and offshore wind projects are now directly eligible.

-Industry: Best available technologies and CCUS create space for heavy emitters to decarbonize profitably.

-Mobility: Fuel cells and EV-related solutions gain international backing.

-Aviation: With SAF listed, airlines finally have a credible finance mechanism for decarbonization.

-Agriculture & Energy: Compressed bio-gas projects link rural development with global carbon finance.

-Chemicals & Fertilizers: Green ammonia becomes a new frontier.


🏛️ Institutional Ecosystem

The MoEFCC leads implementation, supported by NDAIAPA. The July memorandum was circulated across ministries—Power, Mines, Heavy Industries, Aviation, Rural Development, MSME, and more—showing that Article 6.2 is not siloed.

It’s a whole-of-government strategy. Climate policy meets industrial policy meets foreign policy.


🌐 India’s Global Position

By operationalizing Article 6.2, India:

-Strengthens Indo-Japan ties.

-Positions itself for future deals with EU, ASEAN, and Middle East.

-Sets an example for other developing nations.

This is both an economic opportunity and a diplomatic lever.


⚠️ Challenges to Watch

-Governance Complexity: Multiple ministries and NDAIAPA approvals may slow progress.

-MRV Systems: Strong monitoring and reporting needed for credibility.

-Balancing Export vs. NDC Needs: Credits sold abroad must not undermine India’s commitments.

-High Costs: Some technologies, like CCUS, still face commercial barriers.

But with digital MRV tools, blended finance, and clear rules, these challenges can be overcome.


💡 Role of Private Players

This is where companies like Anaxee can make a difference.

-Project Developers: Can design projects aligned with eligible activities.

-Corporates: Can invest in Article 6.2 projects to offset or diversify.

-Investors: Can treat ITMOs as a credible, government-backed asset class.

Private innovation, last-mile execution, and digital MRV are critical for scaling.


🚀 From Japan to the World

The Japan MoC is only the first chapter. Next could be:

-Europe (offshore wind, CCUS)

-ASEAN (mobility and renewables)

-Middle East (green hydrogen partnerships)

India has Cabinet approval to sign more such MoCs. Each one expands the market.


📝 Conclusion: India’s Carbon Market at a Turning Point

Article 6.2 has finally moved from negotiation rooms to reality.

For India, it means:

-First operational MoC with Japan under JCM.

-Clear activity list for eligible projects.

-Finance + technology flows into priority sectors.

-Credibility and leadership in global climate markets.

This is not the time to stand back and observe. The rules are set, the framework is active, and the opportunities are real.

For developers, corporates, and investors: the Indian carbon market is open for business.


About Anaxee:

Anaxee drives large-scale, country-wide Climate and Carbon Credit projects across India. We specialize in Nature-Based Solutions (NbS) and community-driven initiatives, providing the technology and on-ground network needed to execute, monitor, and ensure transparency in projects like agroforestry, regenerative agriculture, improved cookstoves, solar devices, water filters and more. Our systems are designed to maintain integrity and verifiable impact in carbon methodologies.

Beyond climate, Anaxee is India’s Reach Engine- building the nation’s largest last-mile outreach network of 100,000 Digital Runners (shared, tech-enabled field force). We help corporates, agri-focused companies, and social organizations scale to rural and semi-urban India by executing projects in 26 states, 540+ districts, and 11,000+ pin codes, ensuring both scale and 100% transparency in last-mile operations. Connect with Anaxee at sales@anaxee.com 

Anaxee's Field worker Distributing Improved Cookstove in Rural India, Beneficiaries in line waiting for thier turn

Article 6 Authorized Carbon Credits: A Straight-Talk Guide for Indian Project Developers

Article 6 Authorized Carbon Credits: A Straight-Talk Guide for Indian Project Developers
1. Why This Matters (Quick Intro)

Climate finance is changing fast. After COP 28, everybody keeps hearing “Article 6”. The term sounds complicated, but in simple words it is just a new rulebook under the Paris Agreement that lets one country, company or airline use carbon reductions achieved in another country- as long as everyone counts them only once.

For small and mid-size project developers in India, this change opens two big doors:

  1. Higher Prices. Buyers pay a premium for credits that carry an Article 6 “authorized” tag because these units come with extra proof that no one else—especially the host government—will double-count them.

  2. New Markets. Compliance schemes like CORSIA (for airlines) have moved from trial to Phase 1 in 2025. Those schemes accept only Article 6 authorized credits from recognised standards such as Gold Standard.

Anaxee, with 50 000+ Digital Runners collecting field data across 11 000 pin codes, is perfectly placed to help rural projects grab this premium. This guide explains the mechanics in plain English and lays out a step-by-step action list for Indian developers, NGOs, and community groups.


2. What Exactly Is Article 6?
2.1 The Short Version

– Article 6.2 lets two or more governments trade “ITMOs” (Internationally Transferred Mitigation Outcomes). Think of an ITMO as a carbon token that carries a government signature.

– Article 6.4 will create a UN-run crediting mechanism (something like the old CDM 2.0), but rule-writing is still stuck after COP 28.

– Both tracks insist that the host country must apply a corresponding adjustment—an accounting correction in its national inventory—so the same tonne of CO₂ is not claimed twice.

2.2 Why COP 28 Still Matters, Even Without Final Text

Negotiators in Dubai failed to finalise the 6.2 and 6.4 guidance, but real-world deals kept moving:

– Thailand and Switzerland executed the first government-to-government ITMO transfer.

– Gold Standard awarded the first “Article 6 authorized” labels to cookstove projects in Rwanda (Atmosfair) and Malawi (Hestian).

– Airlines entering CORSIA Phase 1 (2024–2026) confirmed they will only buy authorized credits.

Take-away: waiting for perfect UN text means losing time. Early movers are already locking supply agreements.


3. The New Buzzword: “Authorized” Credits

Authorized credit = ordinary carbon credit + official permission letter (LOA)

  1. Letter of Authorization (LOA). The host government signs a document saying:

    • Project X may transfer Y tonnes for purpose Z (NDC, CORSIA, or other).

    • The government will adjust its own greenhouse-gas inventory accordingly.

  2. Label in Registry. A recognised standard (e.g., Gold Standard) attaches a digital tag to each issued credit, showing which purpose(s) it can serve.

  3. Transparency Gate. Registries stop users from retiring credits for purposes not covered by the LOA.

Because of the extra vetting, these credits normally sell at a 20–40 % premium over standard voluntary units—sometimes more when supply is tight.


4. Inside the Gold Standard Framework (2025 Edition)

Gold Standard upgraded its registry in three key ways:

Feature Why It Matters
Multi-purpose tag (“Compliance”, “CORSIA”, “Other”) Shows exactly which market you can use the credit in.
Separate flag for “Corresponding Adjustment Applied” Buyers see if the host government has completed the bookkeeping yet.
Public upload of each LOA Total transparency- anyone can download the letter.

For Indian developers, choosing Gold Standard means:

– Faster market access (CORSIA will recognise GS once final administrative sign-off lands later in 2025).

– Strong SDG tracking—important for CSR-driven buyers.

– Compatibility with existing methodologies (cookstoves, agroforestry, bio-char, bundled smallholder projects, etc.).


5. Market Signals You Can’t Ignore in 2025
  1. Airlines Need Millions of Tonnes. IATA projects CORSIA Phase 1 demand at 200–250 million tonnes; supply of authorized units is still under 20 million. Math is simple: shortage = higher prices.

  2. Corporate “Net-Zero” Police Are Tightening. The Voluntary Carbon Market Integrity Initiative (VCMI) and Science Based Targets initiative (SBTi) now nudge big brands toward Article 6 aligned credits for headline claims.

  3. Southeast Asian Buyers Are Active. Singapore’s carbon tax allows regulated companies to surrender up to 5 % of taxable emissions using Article 6 authorized credits from accepted standards—Gold Standard included.


6. Where Does India Stand?
6.1 Policy Snapshot
Item Status (July 2025)
Carbon Credit Trading Scheme (CCTS) Pilot auctions under way; Article 6 alignment planned for 2026 roll-out.
Designated National Authority (DNA) Re-notified under MoEFCC; draft LOA template circulated for comments.
Positive List Energy efficiency, renewable micro-grids, agroforestry, clean cooking expected to feature.

– States like Madhya Pradesh, Odisha, and Jharkhand, where household biomass use is high, can become cookstove powerhouses- exactly like Rwanda’s example.

– Bund plantation models (Verra VM0047) can gain extra funding if authorized, because the buyer receives a compliance-eligible tonne rather than a voluntary one.


7. Why Anaxee Has a Built-in Advantage
  1. Last-Mile Data Capture. Digital Runners already visit rural households; adding stove usage surveys or tree-survival checks needs zero new hiring.

  2. Tech + Trust. Mobile app timestamping plus periodic drone fly-overs (sensor data pushed to an immutable ledger) offers verifiers bullet-proof evidence—exactly the traceability Gold Standard loves.

  3. Scale at Speed. 50 000 runners across 540+ districts can implement identical protocols nationwide, giving India the scale factor every government official craves.


8. Step-by-Step Action Plan for Indian Developers

Total timeline: as quick as 9 months for a straightforward cookstove bundle.


9. Risks & Reality Checks

– Revocation Risk. Host governments can, in theory, cancel an LOA. Mitigate by aligning with national priorities and maintaining clear communication channels.

– Price Fluctuation. Premium today doesn’t guarantee tomorrow. Hedge by locking multi-year offtake deals.

– Methodology Upgrades. If Article 6.4 UN rules introduce stricter baselines, be ready to update MRV. Continuous monitoring by Digital Runners acts as built-in safeguard.


10. Final Thoughts

Article 6 is no longer a future concept. Credits with the right authorization stamp are already trading, and compliance buyers are hunting for scalable, trustworthy supply. India can become a major source- if project owners act now.

Anaxee stands ready to plug your rural project into this premium pipeline with rapid data collection, tech validation, and transparent reporting. Contact our Tech for Climate team today, and let’s turn global rules into rural rewards.

Field Worker Sapling nursery agroforestry carbon project in India

 

Top Carbon Project Developers in India | Anaxee’s Tech for Climate

 

Carbon Project Developers in India: Who’s Driving the Climate Action and Why Anaxee Matters

India’s role in global climate action is only getting bigger. With its vast agricultural base, large rural population, and rising energy demands, the country presents both a climate challenge and a massive carbon mitigation opportunity.

At the center of this transition are carbon project developers– the organizations that design, implement, and monitor projects that reduce or remove greenhouse gas (GHG) emissions. These could range from agroforestry and regenerative agriculture to improved cookstoves, solar devices, and more.

But in a country as vast and complex as India, execution at the last mile– especially in rural and semi-urban areas- is the biggest barrier.

That’s where Anaxee’s Tech for Climate steps in.

Nature-Based (NbS) and Community projects. (Agroforestry, Regen Agriculture, Solar devices, Improved Cookstoves, Water filters, LED lamps, etc.) worldwide.


Who Are Carbon Project Developers in India?

Carbon project developers are specialized organizations that create and implement projects that generate verified carbon credits. These credits are sold in compliance or voluntary carbon markets, offering both revenue and environmental benefits.

They typically work with:

– Smallholder farmers

– Rural households

– Forest communities

– Renewable energy providers

– CSR partners and NGOs

These developers handle the complex tasks of:

– Methodology selection (like Verra VM0047, Gold Standard, etc.)

– Baseline assessments

– Community engagement

– Data collection

– Monitoring, reporting, and verification (MRV)

The Indian landscape is unique—deeply rural, agriculturally intense, and governed by diverse ecological and social systems. Effective carbon project development here demands scale, trust, and local knowledge.


Why India is Ground Zero for Carbon Projects:

India is fertile ground for nature-based and community-led carbon projects because:

– 60%+ population lives in rural areas: Perfect for community and household-level interventions.

– Diverse agro-climatic zones: Opportunities for agroforestry, soil carbon, and afforestation.

– Policy push from Indian government: India’s Carbon Credit Trading Scheme (CCTS), Green Credit Program, and commitment to net zero by 2070 are driving momentum.

– CSR Funding: Corporates are aligning CSR budgets with carbon and sustainability goals.

All these factors make India one of the most attractive markets for carbon developers globally.


But Carbon Project Development in India Isn’t Easy-

Anaxee team member inspecting sapling nursery for carbon-grade TOF plantation under afforestation project in IndiaDespite the opportunity, project developers in India face major hurdles:

  1. Lack of on-ground presence
  2. Difficulty in accessing remote communities
  3. Unreliable data collection
  4. High transaction costs
  5. Low digital penetration in rural areas
  6. Verification bottlenecks
  7. Delayed impact reporting

The bottleneck is clear: execution at scale with integrity. Without that, even the best-designed project risks falling apart.


Enter Anaxee: India’s Tech for Climate Backbone

Anaxee is India’s largest last-mile outreach engine, with a tech-enabled field force of over 50,000 Digital Runners operating across:

– 26 States
– 540+ Districts
– 11,000+ Pincodes

We don’t just reach India- we bring accountability and transparency to carbon project execution in Bharat.


What Makes Anaxee a Game-Changer for Carbon Project Developers?

1. Scale and Speed

Whether it’s planting 10,000 trees in Bundelkhand, deploying 500 clean cookstoves in rural Bihar, or enrolling 1 lakh farmers in Madhya Pradesh for regenerative agriculture- Anaxee can mobilize feet-on-street in days, not months.

2. Tech-Driven Transparency
Drone Tree Counting for Agroforestry  Project in India

We’ve built our own field force management system, geotagging tools, and data dashboards to:

– Monitor field-level activities in real-time
– Monitoring the device and survival rates (e.g. cookstoves, solar lamps)
– Report anomalies instantly
– Generate verifiable data trails

3. 100% On-ground Visibility

We don’t believe in assumptions. Our Digital Runners go door-to-door to collect data, conduct surveys, train users, and monitor impact- physically, not virtually.

4. Custom Tech for Carbon Projects

We tailor tech stacks for different methodologies:

Agroforestry (VM0047): Census-based monitoring tools
Improved Cookstoves: Monitoring tracking via mobile app
LED/Water Filters: QR-based tracking and servicing logs
Soil Carbon: Farmer plot-level data aggregation
Biochar: Structured Process to making and application of biochar in india


What Kind of Projects Can We Help With?

Anaxee works with carbon project developers, climate investors, CSR teams, and methodology consultants to implement:

Project TypeMethodologyAnaxee’s Role
Agroforestry BundsVerra VM0047Plantation + Monitoring
Regenerative AgricultureSoil Carbon / VerraFarmer enrolment + Data
Clean CookstovesGS / CDMDeployment + Monitoring
Solar Devices / LEDsVerra / GSDistribution + QR tracking
Safe Water FiltersGold StandardDeployment + Field Audits

Why Choose Anaxee as Your Execution Partner?

FeatureTraditional ModelsAnaxee
Local ReachLimitedPan-India
Tech for MRVOutsourcedBuilt-in
Foot-on-Street ExecutionAgency-basedOwned Network
Real-Time DataRareAlways-On Dashboard
Field TransparencyManualAutomated
Cost-Effective ScalingDifficultSeamless

Partnership Models We Support

We work with:
Project Developers looking to implement at scale
Carbon Finance Investors seeking on-ground execution
Consultants building MRV systems
Corporates (CSR) funding carbon-related impact

Whether you’re designing a new project, scaling an existing one or need consultation, Anaxee can be your Execution and Monitoring Partner across India.


The Bottom Line: Execution is the Differentiator

India doesn’t just need more carbon projects- it needs carbon projects that work.

That means:

– Reaching the last mile
– Building community trust
– Monitoring with accuracy
– Verifying with evidence

Carbon project developers who partner with Anaxee don’t have to worry about these bottlenecks. We solve them with a combination of people, tech, and accountability.


Ready to Scale a Carbon Project in India?

If you’re a developer, investor, or CSR team planning a carbon project in India, connect with Anaxee today.

– We’ll bring the scale.
– We’ll bring the transparency.
– We’ll bring the tech.
– You bring the climate mission.


🔗 Contact Us

📧 Email: sales@anaxee-wp-aug25-wordpress.dock.anaxee.com 


Field Worker Sapling nursery agroforestry carbon project in India